Brian Cowen (Laois-Offaly, Fianna Fail)

Expenditure for 2008 is broadly in line and we estimate that the reduction in overall revenues over those projected will be approximately 13%. November is a disappointing month and next month will be also. It reflects not just the situation in the construction industry but also, more broadly, a slowdown across the economy which we have all observed in recent times. Economic forecasters have indicated a difficult year coming up in 2009 also.

While I want to maintain the convention regarding the issuing of the November returns with the Department of Finance in the normal way, there will be a deterioration on the projected 5.5% deficit for this year. It will be above that because of the slowdown in the economy and the fact that the reduction in taxation concerns not only property-related taxes but also other taxes which have performed disappointingly, as one would expect, including corporation tax returns which reflect reduced profitability in the more exacting economic circumstances they are now contending with.

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